Tesco and Sainsbury’s are preparing a fightback, as grocer turns to price cuts to reverse decline in market share

Sainsbury's has forecast that shop profits will flatline or fall in the coming year as the supermarket sector prepares for a possible price war. The retailer said it expects income to dip to £1bn as it continues to invest in lowering grocery prices.

Sainsbury's chief exec Simon Roberts (pictured) said it was 'committed above all else' to being the 'most competitive we've ever been'.